Which of the Following Bonds Would Have the Greatest Percentage

question 71

Multiple Choice

Which of the following bonds would have the greatest percentage increase in value if all interest rates fall by 1%?

• A) 20-year, 10% coupon bond.
• B) 20-year, 5% coupon bond.
• C) 1-year, 10% coupon bond.
• D) 20-year, zero coupon bond.
• E) 10-year, zero coupon bond.

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Definitions:

Co-occurring Disorders

The simultaneous presence of two or more disorders, often a combination of mental health and substance use disorders, in an individual.

Integrated Substance Abuse

A comprehensive approach to address substance abuse through the coordination of therapy and support services across multiple sectors.

Co-occurring Disorders

The presence of two or more disorders or illnesses occurring in the same person, simultaneously or sequentially, with each potentially exacerbating the other.

Harm Reduction

Strategies and policies designed to minimize negative health, social, and legal impacts associated with human behaviors, such as drug use.